Madrid\/New York, Oct 23 (EFE).- The yield on the 10-year US Treasury bond surpassed 5% again Monday, after briefly doing so late last week when it crossed the line for the first time since 2007.<\/p>\n\n\n\n
By midday on Wall Street, the yield on the benchmark ten-year US Treasury note reached 5.019%, up from 4.916% when it closed last Friday, although it had fallen to 4.85% by the end of the session.<\/p>\n\n\n\n
Experts explain that the expectation that the US Federal Reserve (Fed) will keep interest rates high for longer than expected is causing a sustained increase in the profitability of government debt.<\/p>\n\n\n\n
However, US analysts noted that a well-known hedge fund manager, Bill Ackman, announced Monday that “there is too much risk in the world to bet short on bonds given current long-term rates,” after which performance fell.<\/p>\n\n\n\n
Last week, Fed Chairman Jerome Powell hinted that there will be an extended period of high interest rates, and in the afternoon after the markets closed, the benchmark bond surpassed 5%.<\/p>\n\n\n\n
Powell insisted that the Fed will continue to monitor economic data to adjust its rate hike, but reiterated that inflation remains high and that there is still a way to go to bring it down to 2%.<\/p>\n\n\n\n
A goal that will require achieving and maintaining a “sufficiently restrictive” stance until inflation shows signs of moving closer to that goal.<\/p>\n\n\n\n
The Fed has been raising rates steadily since March 2022, with exceptions in June and September 2023.<\/p>\n\n\n\n
They are currently between 5.25% and 5.5%, their highest level since 2001.<\/p>\n\n\n\n
The next Fed meeting is scheduled for Nov. 1.<\/p>\n\n\n\n
In Europe, as in the US, interest rates are rising again after Friday’s moderation. The yield of the ten-year German bond, considered the safest on the Old Continent, reached 2.966%. EFE <\/p>\n\n\n\n
mtd-nqs\/mcd\/ics<\/p>\n\n\n\n
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